Ingram Micro cuts 3Q outlook on weak September

Ingram Micro Inc., a technology products distributor, on Tuesday lowered its third-quarter guidance due to weaker-than-expected results for early September.

The company expects earnings between 18 cents and 23 cents per share for the quarter, down from previous guidance in July of 31 cents to 36 cents per share. Both estimates include anticipated expenses of 2 cents per share related to cost-cutting plans in North America and Europe.

Analysts polled by Thomson Reuters, on average, expect a profit of 37 cents per share. Analysts typically exclude one-time items from their estimates.

Ingram Micro now expects revenue between $8.3 billion and $8.6 billion for the quarter, compared with a previous forecast of $8.5 billion to $8.8 billion.

Analysts expect revenue of $8.71 billion.

Ingram Micro said it faced a tough economic environment in August.

"It's now clear that this economic softness is continuing into September, which is exerting greater pressure on operating margins," said Gregory M. Spierkel, chief executive, in a statement.

Spierkel said the company is not seeing the "typical September bounce-back" from the summer holidays in Europe.

"North America seemed to be relatively stable in the summer months, but we're experiencing broad-based softness in September," he added.

The company is cutting costs in an effort to improve results, Spierkel said.

Shares of Ingram Micro fell $1.32, or 7.5 percent, to $16.20 in premarket activity. The stock has ranged from $14.86 to $21.52 over the past year.